What Is a Subprime Mortgage? | LowerMyBills

Subprime mortgages became notorious thanks to their role in the housing crisis that fueled the Great Recession of 2007-2009. But if it’s your first time buying a home, then you might still be unclear on what exactly are subprime mortgage loans.

As the name suggests, subprime mortgages are less than ideal because they come with higher interest rates. These mortgages are typically offered to borrowers who are considered riskier to lend to due to their weak credit records.

Featuring Annie Margarita Yang, Personal Finance Writer
 
Follow LowerMyBills:
 
 
LowerMyBills does not endorse, warrant, or guarantee any financial product, service or company and makes no representation of any rates or financial programs. The content displayed on LowerMyBills or in this video does not provide legal, financial, accounting or tax advice.

[danielladelatorre]

Love your explanation, easy to follow but I wish the background music wasn’t so loud because it’s very distracting

[narucalo]

Basically, you dig yourself into a deeper hole than the one you are already in. You can fix your credit by falsifying a police report on your credit card default fax the report to the CC company and they will be forced to remove those negative marks. Just be aware when you do it too much it will come back and bite you just do it with the biggest debt.

[AshleySpeaksU]

I'm definitely a "prime" borrower, but too bad, folks. I don't like your terms. 😂